Different Ways to Reduce Shipping Costs

0515_b1_6waystosave_artIf you are a small business, you must have the knowledge about difficulty in operations, especially in the starting days, due to tight budget. In that scenario, the added shipping costs would seem pretty intimidating. Even for the big and established companies, an increased shipping cost is nothing less than a challenge. Nevertheless, dealing with this issue may involve persuading a company to reduce the cost, but that’s just one thing out of many. There are some more points that you need to take into consideration.

Negotiate on prices: It’s understandable that you can leverage your business relationship with a carrier to get the costs reduced. However, it may come as good news that some big carriers have special packages for the small businesses. These packages are meant to settle the business-client relationship but you can take it as an opportunity to strengthen your business.

Know the geographical limit in which your product has its demand: Use statistics to find out the areas where your product has major demand. It helps you to know if your product is popular in one specific area. To ship products to that area, you can hire regional carriers. The main advantage of dealing with the regional carriers is that they charge a lot lesser for shipping.

Go for third party insurance: Asking shipping carriers to provide shipping cover can be unwise as compared to going for the third party insurers. The average insurance rates you may be charged with are $0.90 per $100. On the other hand, third party insurance companies charge you as lesser as $0.50. This little difference turns out to be the huge one when you ship bulk of expensive items.

Asking for free supplies: Check to find out if your carrier can provide shipping supplies for free or in cheaper rates. Shipping supplies include boxes and other packing materials that are used to secure the packages. Although these supplies are essential, spending too much money is not wise at all.

Priority mail and priority mail express: While using Priority Mail and Priority Mail Express, you can get considerable discount on postage if you buy postage from Express 1. Express 1 provides discount to the companies that ship their products using Priority Mail or Priority Mail Express of USPS. The good thing about buying postage from Express 1 is you get the discount regardless of the volume of your package, and also you don’t need to sign any contract beforehand.

Consider weight and volume: Weight and volume of the package have great importance if you are concerned about the cost of shipping. Shipping carriers set different rates for different weights and volumes. With that said, you need to make sure that you are not adding addition weight and dimensions to the package that would raise the cost of shipping.


Author: Juan Gonzalez

Earned praise for buying and selling sock monkeys for the underprivileged. Crossed the country deploying rubik's cubes in the government sector. Prior to my current job I was creating marketing channels for mosquito repellent for farmers.

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